MUMBAI: Indian shares extended gains to a second session on Tuesday, supported by metal stocks.
The NSE Nifty 50 index rose 1.36 percent to 16,057.70, as of 0508 GMT, while the S&P BSE Sensex gained 1.09 percent to 53,553.72, after snapping a six-session losing streak on Monday.
LIC falls in market debut
Shares in Life Insurance Corp. of India slid 5 percent in their market debut on Tuesday, a fresh setback for the state-owned giant after its initial public offering, while record-breaking, raised far less for the government than initially envisioned.
The country’s biggest insurer and its largest domestic financial investor was trading at around 900 rupees ($11.6) per share on Tuesday morning compared with its IPO price of 949 rupees, valuing it at around 5.7 trillion rupees or $73 billion.
The share price decline is in line with a slump in the broader market since LIC’s IPO opened for subscription on May 4.
“We were not expecting big, as markets were jittery, expect it to pick up,” LIC Chairman M. R. Kumar told reporters.
At one point on Tuesday, LIC shares plunged as much as 9 percent before paring losses.
The government had raised roughly $2.7 billion from selling a 3.5 percent stake in LIC.
US concerned over wheat export ban
US Agriculture Secretary Tom Vilsack said on Monday he has “deep concern” about India’s wheat export ban, which spurred a rally in already elevated wheat prices.
“What we need is transparency in the market, what we need is a market that is helping to get goods to those who are in need,” Vilsack said on a call with journalists.
(With input from Reuters)
